Pressure BioSciences Inc. (PBIO) completed the initial tranche of a new funding round, pocketing nearly $1.2 million through the sale of equity units.
In all, the Easton, Mass.-based pressure cycling device manufacturer expects to generate $2.5 million in proceeds from the sale of units consisting of non-voting Series B convertible preferred stock and warrants to purchase additional shares at $23.80 a share. Each preferred share can be converted into 10 shares of PBIO common stock.
Pressure BioSciences shares closed yesterday at $1.43 each.
Company officials said the proceeds would be used to add new full-time employees, including a new sales director and a new applications scientist, as well as several part-time support employees. The funding will also will go to finish work on pressure-cycling technology instrumentation and consumables, chairman Wayne Fritzsche said in a statement.
The firm had nearly $1.4 million in cash on hand at the end of September and has been striving to slow its cash burn while working to commercialize its BaroCycler device. The device subjects tissue samples to up to 35,000 pounds of pressure, accelerating the digestion and extraction of protein from cells — a key step in preparing the samples for mass spectrometry.
PBIO did not immediately identify the investors participating in the private placement. Executives earlier this week indicated they were working on a new funding package and would soon detail efforts to improve the company’s capital position.
The company in February completed a similar private placement, receiving $1.8 million from the sale of 156,980 units of Series A Convertible Preferred Stock and warrants. That deal was priced at $11.50 per unit, with investors also entitled to 5-percent annual dividends.